Abstract
The application of hydrogen in modern farming is transitioning from a
conceptual idea to a practical reality, poised to meet future agricultural
machinery requirements and transition goals. Increasing tensions between
farmers and various institutions underscore the growing sensitivity around
fossil fuel dependency in the agricultural sector, particularly in northern
economies. This study investigates the economic feasibility of using
decentralized hydrogen systems to fully replace fossil fuels in cereal crop
farming across four agricultural zones. Specifically, it examines the economic
viability of on-farm hydrogen production using electrolysers to meet the fuel
needs of different farm structures. Various scenarios were modelled to assess
the impact of switching to hydrogen fuel for annual farm operations, using Net
Present Value (NPV) and Levelized Cost of Hydrogen (LCOH) metrics for
hydrogen refuelling facilities on distinct farm structures. The results
indicate that economic feasibility is a significant challenge, with LCOH
reaching as high as 57 €/kg of hydrogen in some cases, while the best case
scenarios achieved LCOH as low as 7.5 €/kg. These figures remain
significantly higher than those for diesel and alternative fuels such as
methane, FAME, and HVO. The study also assessed strategies for reducing
hydrogen production costs using low-cost electricity and maximizing plant
efficiency by increasing the electrolyser utilization rate to 70%. Additionally,
the potential for revenue generation through the sale of by-products was
explored. Our findings highlight both the challenges and opportunities
associated with hydrogen use in agriculture, emphasizing the critical role
of access to renewable energy sources and the economic limitations of byproduct
revenue streams. In conclusion, while decentralized hydrogen
production can contribute to emission reductions in cereal crop farming,
further research and policy support are essential to improve its feasibility and
sustainability.
conceptual idea to a practical reality, poised to meet future agricultural
machinery requirements and transition goals. Increasing tensions between
farmers and various institutions underscore the growing sensitivity around
fossil fuel dependency in the agricultural sector, particularly in northern
economies. This study investigates the economic feasibility of using
decentralized hydrogen systems to fully replace fossil fuels in cereal crop
farming across four agricultural zones. Specifically, it examines the economic
viability of on-farm hydrogen production using electrolysers to meet the fuel
needs of different farm structures. Various scenarios were modelled to assess
the impact of switching to hydrogen fuel for annual farm operations, using Net
Present Value (NPV) and Levelized Cost of Hydrogen (LCOH) metrics for
hydrogen refuelling facilities on distinct farm structures. The results
indicate that economic feasibility is a significant challenge, with LCOH
reaching as high as 57 €/kg of hydrogen in some cases, while the best case
scenarios achieved LCOH as low as 7.5 €/kg. These figures remain
significantly higher than those for diesel and alternative fuels such as
methane, FAME, and HVO. The study also assessed strategies for reducing
hydrogen production costs using low-cost electricity and maximizing plant
efficiency by increasing the electrolyser utilization rate to 70%. Additionally,
the potential for revenue generation through the sale of by-products was
explored. Our findings highlight both the challenges and opportunities
associated with hydrogen use in agriculture, emphasizing the critical role
of access to renewable energy sources and the economic limitations of byproduct
revenue streams. In conclusion, while decentralized hydrogen
production can contribute to emission reductions in cereal crop farming,
further research and policy support are essential to improve its feasibility and
sustainability.
| Original language | English |
|---|---|
| Article number | 1479212 |
| Journal | Frontiers in Energy Research |
| Volume | 13 |
| DOIs | |
| Publication status | Published - 10 Feb 2025 |
| MoE publication type | A1 Journal article-refereed |
Keywords
- fuel consumption,
- hydrogen refuelling system,
- decarbonisation,
- agricultural machinery,
- hydrogen
- crop farming